Which of the Following Statements Is False About Virtual Organizations

question 59

Multiple Choice

Which of the following statements is false about virtual organizations?

• A) A company that lacks a particular resource enters an agreement with a company that has that resource.
• B) Companies in a virtual organization have high control over functions done by other network members.
• C) The number of members of a virtual organization is defined by skills and resources needed to reach the goal of the network.
• D) There is high interdependence among members of the network.

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Definitions:

Schedule Of Cost Of Goods Sold

A detailed statement showing the direct costs, indirect costs, and manufacturing overheads incurred to produce goods sold in a period.

Finished Goods Inventory

This inventory includes products that have completed the manufacturing process but have not yet been sold to customers.

Cost Of Goods Manufactured

The total manufacturing costs of goods that are completed and ready for sale within a specific accounting period.

Manufacturing Overhead

All manufacturing costs that are not directly traceable to a product, including costs associated with running the production facility.